Consider the Following Information

question 56

Multiple Choice

Consider the following information.
(i) $20 000 of accounts payable was paid.
(ii) $100 000 from accounts receivable was received.
(iii) Inventory of $200 000 was purchased on credit.
(iv) Credit sales of $700 000 (cost of goods sold was $450 000) were made.
(v) $10 000 of prepayments expired during the month.
What is the profit for the period?

• A) $120 000
• B) $240 000
• C) $250 000
• D) none of the above.

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Definitions:

Insecticides

Chemical substances used to kill or control insect pests, playing critical roles in agriculture, disease vector control, and household pest management.

Water Table

The upper level of an underground surface in which the soil or rocks are permanently saturated with water.

Elevations

The height of a geographical location above a reference point, typically sea level, affecting climate, vegetation, and human activities.

Contour Map

A map that uses contour lines to represent elevations and the slope of the ground surface.